UPDATE 1-Indonesia - Market Factors to watch - Feb 28

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JAKARTA Feb 28 (Reuters) - Following is a list of events in Indonesia as well as business highlights from newspapers and factors that may influence financial markets.

WHAT'S HAPPENING IN INDONESIA TODAY (LOCAL TIME/GMT)

- Parliament hearing on options to reduce fuel subsidy from the state budget.

PRESS DIGEST

- ASTRA PLANS TO SPLIT STOCK TO INCREASE LIQUIDITY

PT Astra International, Indonesia's main vehicle distributor and biggest listed company, plans to split its stock in 1:10 ratio to increase the liquidity of trading on the Indonesia Stock Exchange, said Gita Tiffany Boer, the company's corporate secretary. The plan is subject to approval from shareholders in an extraordinary meeting scheduled in April or May this year. (Investor Daily p.1, Kontan p.1 & Bisnis Indonesia p.1)

- BOSOWA GROUP TO SPEND $1 BLN FOR EXPANSION IN FIVE YEARS

Bosowa group, a business group with headquarters in Makassar, South Sulawesi, plans to spend $1 billion for expansion in strategic sectors such as cement, infrastructure, mining, finance and automotive within the next five years, said CEO Erwin Aksa. He added that the firm will build cement factories in Central Java, East Java, West Java, and South Sulawesi with total investment of more than $500 million. (Investor Daily p.1)

- BERAU TO BOOST CAPEX

Indonesian coal miner PT Berau Coal Energy Tbk plans to spend $691 million on capital expenditure until 2014, up from an earlier target of between $450-$475 million, CEO Roslan P Roeslani said.

"He added that the firm will build cement factories in Central Java, East Java, West Java, and South Sulawesi with total investment of more than $500 million"The firm forecasts production in 2014 will reach 33 million tonnes. (Investor Daily p.13)

- BAKRIE & BROTHERS SEEKS UP TO 1.2 TRLN RPH IN STAKE SALES

PT Bakrie & Brothers aims to raise up to 1.2 trillion rupiah from the sale of its two units, Bakrie Pipe Industries and South East Asia Pipe Industries, said finance director Eddy Soeparno. Most of the funds will go into the Bakrie Infrastructure Fund to finance its infrastructure projects, said Soeparno, adding that the firm expects to complete one of the deals by mid-year. (Kontan p.5)

- DAIHATSU TO SPEND 1 TRLN RPH FOR NEW OUTLETS

Car distributor PT Astra International Tbk-Daihatsu Sales Operation plans to open 30 new outlets in several cities between now and 2014 with a total investment of up to 1 trillion rupiah, as a response to strong domestic demand, said CEO Suparno Djasmin. The firm sees 2012 sales will reach 166,000 units that represent 17 percent of domestic market shares.

(Bisnis Indonesia p.i8)

- BANK KESEJAHTERAAN PLANS TO GO PUBLIC NEXT YEAR

Lender PT Bank Kesejahteraan Ekonomi plans to float around 30 percent of its shares during an initial public offerin g scheduled for next year, said CEO Yunianto Budi Sudarmodjo. (Investor Daily p.21 & Kontan p.12)

MARKET SNAPSHOTS

* Jakarta's Composite Index finished 0.9 percent down, at a near two-month low on Monday as rising oil prices raised concerns over global economic growth, weighing on how investors feel about the region's emerging markets.

* Markets consolidated on Tuesday as investors remained wary of the impact from high oil prices on growth and hoped the European Central Bank's upcoming second liquidity injection will support sentiment and revive risk appetite.

* The benchmark S&P 500 closed at its highest level since mid-2008 on Monday, extending gains for a third session as oil prices retreated after a recent rally and data showed further improvement in the U.S. housing market.

* Oil prices pulled back on Monday after a string of higher settlements as concerns that high oil prices might curb economic growth, along with the stronger dollar, countered supportive fears about Iran and potential supply disruptions.

* Malaysian crude palm oil futures ended off an eight-and-a-half month high on Monday, with traders booking some profit on a rally driven by improving demand and still-high energy prices. ----------------------MARKET SNAPSHOT @ 0005 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 1367.59 0.14% 1.850 USD/JPY 80.44 -0.19% -0.150 10-YR US TSY YLD 1.9307 -- 0.005 SPOT GOLD 1768.29 0.10% 1.800 US CRUDE 108.03 -0.49% -0.530 DOW JONES 12981.51 -0.01% -1.44 ASIA ADRS 130.54 -0.43% -0.57 --------------------------------------------------------------

LATEST STORIES ON:

* Indonesia stocks........

* Southeast Asian stocks..

* Asian stocks preview....

* Asian currencies........

* U.S. stocks.............

* Oil prices..............

* Global markets..........

* Malaysian crude palm oil

* Indonesian palm oil.....

* Global economy..........

* Key Asian companies.....

* Key currencies..........

* Major deals of interest.

($1 = 9125.0000 Indonesian rupiahs) (Reporting by Jakarta Bureau and Rin Hindryati; Editing by xxxxx)

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